Is SolarCity Corp (SCTY) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dumped their entire stakes in the stock during the third quarter. Intriguingly, Shashin Shah’s Think Investments dumped the biggest stake of all the hedgies tracked by Insider Monkey, totaling close to $18.3 million in call options. Citadel Investment Group also dropped its call options, about $15.3 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as SolarCity Corp (NASDAQ:SCTY) but similarly valued. We will take a look at Owens & Minor, Inc. (NYSE:OMI), Fulton Financial Corp (NASDAQ:FULT), Kite Realty Group Trust (NYSE:KRG), and The Cheesecake Factory Incorporated (NASDAQ:CAKE). This group of stocks’ market values match SCTY’s market value.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $91 million. That figure was $83 million in SCTY’s case. The Cheesecake Factory Incorporated (NASDAQ:CAKE) is the most popular stock in this table. On the other hand Kite Realty Group Trust (NYSE:KRG) is the least popular one with only 9 bullish hedge fund positions. SolarCity Corp (NASDAQ:SCTY) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CAKE might be a better candidate to consider taking a long position in.

Disclosure: None